We propose an Institutional Presence (IP) measure to capture the latent role of non-owner institutional investors who nevertheless may be observing a firm. We employ this measure to examine whether the ‘presence' of institutional investors reduces information asymmetry in the market. Firms in...

Does physical proximity to monitoring capital affect the firm's IPO decision? Using a geographic framework, we measure the amount of monitoring capital of equity investors and banks in each U.S. region. When regional equity capital is abundant, collateral-poor resident firms are more likely to...